Business news

Refinancing rate down to 9.5% in Belarus

MINSK, 14 August (BelTA) – On 14 August, the refinancing rate in Belarus reduced from 10% to 9.5% and the overnight lending rate shrank from 11.5% to 10.75% per annum. The overnight deposit rate was cut down from 8.5% to 8.25% per annum, BelTA has learned.

In Q2 the inflationary processes slowed down. The consumer price growth, with the exception for seasonality, was below the target level of 5% in Q2 (above the target in the previous three quarters).

“The latest decisions are designed to maintain the neutrality of the interest policy in the face of the projected slowdown in the inflation processes, keeping the 2019 inflation target in mind,” the National Bank noted.

The reduced rates on overnight loan and overnight deposit will narrow the corridor of interest rates on banks liquidity regulation tools and will help improve the efficiency of the transmission mechanism of monetary policy.

Further decisions concerning the key interest rates of the central bank will depend on how the balance of inflationary and deflationary factors shifts.

The next session of the Board of the National Bank to discuss monetary management policy is scheduled for 6 November.

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